Understanding GSTR 1 will help us understand about GSTR-1 mechanism in a better manner. The concept of filing of GSTR 1 can be understood in the light of compliances under Goods & Service Tax. The GST tax structure is such that it mandates monthly return filing, thus making each month a taxable period for generation and filing of a set of returns, namely GSTR 1, GSTR 2 and GSTR 3. Each one of these is to be filed in order to declare the transactions made in the said taxable period by the registered taxpayer to the Government. Among these three, GSTR 1 forms the base document that lists the transaction of supply of goods by the business or trader. In easier words, it is the detailed return prepared for the invoices raised by the businesses towards the buyers.
The right way of learning about GSTR-1 lies with learning about the impact that it makes on GSTR 2 Return filing. As mentioned previously, GSTR 1 becomes the base document on the basis of which the rest of the returns are auto-populated. The mechanism is such that the supplier of goods or services enters the details of invoices raised by him towards the buyer of goods or services, an intimation of the same is sent to the buyer confirming the same in the form of GSTR 2A. After the said transaction is confirmed at the buyer’s end, the details of which get auto-populated in the GSTR 2 at the suppliers end. Or else, in case of discrepancy, this detail gets filed under GSTR 1A at the supplier’s end for further modification or rectification.
So how to file GSTR – 1 then, but before that let us read about its contents. Under GST Form GSTR-1 includes a total of 13 sections but all these sections are not necessary to be filled and will be prefilled. Some of the details of sections in GSTR 1 form are:
Part 1 To Part 3 of GSTR-1 Return
1. GSTIN – As allotted by the government
2. Name of the taxpayer
3. Gross turnover of the taxpayer in the earlier Financial year
Part 4 of GSTR1 Return
The details of all the taxable supplies done by the organisation to the registered taxable person
4(A) regarding normal taxable supplies except included in 4(B) & 4(C)
4(B) all the supplies under reverse charge mechanism, rate wise.
4(C) supplies done by e-commerce operators regarding the collection of tax at source, rate wise and operator wise.
Part 5 of GSTR-1 Return
Details Regarding Outward Inter-state Supplies to the Unregistered Individuals in which the Invoice Value Exceeds INR 2.5 lakh
5(A). interstate supplies attracting more than Rs. 2.5 lakh, rate wise and invoice wise
5(B). supplies by e-commerce operator to an unregistered person attracting collection of tax at source, rate wise and invoice wise
Part 6 of GSTR1 Return
All the Zero-Rated Supplies and All Deemed Exports, invoice wise and rate wise.
6(A). Details of outwards supplies statement of the supplier, which an exporter desiring refund of taxes paid on exports or ITC related to exports is required to furnish on the GST portal
Part 7 of GSTR1 Return
Taxable Supplies to Unregistered Person (Net of Debit and Credit Note)
7(A). Details of taxable intra-state supplies to the unregistered dealer and E Commerce operator, rate wise and operator wise.
7(B). supplies below INR 2.5 lakh as inter-state sales to unregistered person, State wise and rate wise and operator wise in case of E commerce operator.
Part 8 of GSTR-1 Return
All the NIL Rated, Exempted and Non-GST Outward Supplies
Part 9 of GSTR1 Return
All the amendments to outward taxable supplies details and the returns furnished for the previous tax intervals.
9(A). Where the earlier filled details in table 6 were incorrect or non-available at the time of filing the returns, it should be added here with corresponding shipping number and date.
9(B). Details of debit notes, credit notes, and refund voucher
9(C).Amendments during previous tax period to the debit notes/credit notes/refund vouchers
Part 10 of GSTR-1 Return
The details of amendment of any taxable outward supplies done to an unregistered individual from earlier tax period
10(A). Rate-wise details of debit notes/credit notes issued to unregistered person for intra-state supplies and separate details for supplies made from e commerce operator
10(B). Rate-wise details of interstate supplies made to an unregistered person with amount value more than 2.5 lakh Rs and separately for supplies from e commerce operator
Part 11 of GSTR-1 Return
Consolidated Statement of Advance Received
11(A). Details of the advance amount received without the invoice issued. This amount must be added to output tax liability, rate wise for both inter and intra-State state supplies.
11(B). Details of the advanced amount received earlier and adjusted this time in table no. 4,5,6 and 7, rate wise for both inter and intra-State Supplies.
Part 12 of GSTR1 Return
Outwards Supplies HSN Wise Summary
Part 13 of GSTR1 Return
Number of documents released in a Tax Period.
Common areas in GSTR1 Return where one can commit mistakes and how to avoid it.
i.While Entering the GSTIN code check it properly whether it has been entered correctly.
ii.HSN/SAC Codes have been entered in the invoices as well as in the returns. Check Product HSN or SAC code at GST Rate Finder Tool.
iii.Enter correct Tax Rate for goods or services. Verify the Tax Rates at GST Rate Finder Tool.
iv.Check if the transaction was Intrastate or Interstate.
vi.Expected errors regarding composition scheme:
a)Registered under Composition Scheme in August month? You are not subject to file the GSTR-1 form for July Month
b)Registering under Composition scheme on or after 1st October? You require not to furnish GSTR-1 form for July month
vii.Stuck with invoice related data?
a)Date format: Date should be in correct format- dd-mm-yyyy (i.e. 01-06-2017)
b)Invoice Number: Invoice number accepts only two special characters- hyphen and forward slash (/)
c)Invoice Data: This field should be furnished to the maximum of 2-decimal digits
How to file GSTR-1 return.
I.Online mode :
Step 1 : Login to GST portal
Step 2 : Fill the details online
II.Offline mode :
Step 1 : Download and Install the Returns Offline tool
Step 2 : Use any of the four options to upload/fill the invoice data
[Option 1 : Manual Entry of Invoice Data; Option 2 : Import Excel workbook consisting of multiple sheet; Option 3 : Copy and Paste from Excel Workbook; Option 4 : Import the . CSV file]
III.Filing GSTR 1 through various GST compliant Software : The GST-ready Tally.ERP 9 Release 6.1 is available now with an added utility to file GSTR 1 returns in offline mode by very few simple steps.. Using this release, the users will be able to generate Form GSTR-1 as per the requirements of GST Department. In this article, we will explain you how to file GSTR 1 from Tally 9 ERP 6.1 in three easy steps
Step 1 : Exporting the data of GSTR 1 from tally to excel file
The GSTR 1 report generated here is nothing but a replica of table wise GSTR 1 format with the details captured under different table heads similar to the actual form. Now after ensuring that all the transactions are included in GSTR 1 Report,
Action Step 1 : Select the period for which returns need to be filed.
Action Step 2 : Press Ctrl + E and change the default format .excel to CSV (comma delimited) on the Export Report screen
Action Step 3 : Specify the export location and output file name
Action Step 4 : Press Enter to Export
Result : Separate CSV files for each tables in GSTR1 will be created by tally 9 ERP if CSV format is selected at the initial stage or else excel file format will be generated.
Step 2: Converting the excel or CSV file into JSON file format using GST offline tool at GST portal
Download the GST offline tool from this link https://www.gst.gov.in/download/returns . The returns Offline tool version V1.2 contains an application file, section wise CSV files, GSTR1 excel workbook template, User manual and read me.
Action Step : Double click on GST offline tool and install
Result : The off line tool will now collate with the excel/CSV file exported from tally and generate you the .JSON file.
Step 3 : Importing the data to Offline Tool
Action Step 1 : Open the GST Offline tool and click New
Action Step 2 : Provide the required details click proceed
Action Step 3 : Click on >>import files >> import excel and select your file [Note: To export the return details in the CSV format, select the name of the table in Select Section under Return Import – One section at a time, and click Import CSV. You have to individually import files for each section.]
Action Step 4 : Click on generate file
Result : An JSON file will be generated which has to be uploaded on GST portal.
To sum up GSTR 1 is a comprehensive return where detailed information is required to be furnished. Therefore proper invoicing and documentation would be key feature to furnish the correct information in the returns. Owing to complexity in filing returns we are witnessing many changes in the returns from the GST department. Tally in its release 6.1 made changes to comply with GST return filing process one such recent change evidenced from Tally in its GSTR1 reporting framework where it enabled for its users table wise viewing of GSTR1 just as available in GST portal. One thing it's clearly evident that ERP Software would have a definite say in the success and growth rate of the entity in the GST regime.